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Everchem Updates
VOLUME XXI
September 14, 2023
Everchem’s exclusive Closers Only Club is reserved for only the highest caliber brass-baller salesmen in the chemical industry. Watch the hype video and be introduced to the top of the league: — read more
May 12, 2021
MOST READ – Europe ethylene, propylene: latest market developments
Author: ICIS Editorial
2021/05/12
The story below was our most read article in the last 12 hours.
By Nel Weddle
11-May-21 18:37
LONDON (ICIS)–European ethylene and propylene markets remain extraordinarily firm with production at a low point due to planned turnarounds and healthy demand which is showing no signs of letting up in the near to medium term.
Spring turnarounds reach their peak in May:
Refinery maintenance is also under way, further restricting propylene supplies.
Given the backdrop of planned outages, unscheduled events like the ongoing Tarragona, Spain, propane dehydrogenation (PDH) unit outage and most recently, the issues at one of the crackers at Gelsenkirchen in Germany are more difficult to manage.
Inventories having been built up with the turnaround season in mind, might offer some initial breathing space for those suddenly caught short, but otherwise the options are limited; many are reluctant in the midst of turnaround season to release tonnes.
Imports are not usually the first option due to lead times – prompt issues require prompt tonnes.
Those with volumes not surprisingly, target higher spot prices.
Ethylene spot pipeline prices flip-flopped through April from premiums to discounts and back to premiums, reflecting the impacts of cracker or derivative problems on a finely balanced market and were back in double-digit premium territory last week for the first time since January.
Propylene spot price premiums have persisted all year but are wide-ranging depending on grade, location, timing and affordability.
Demand across all derivatives is healthy but there are clear differences when it comes to affordability and some buyers are ready to accept whatever it takes to ensure further disruption to downstream production is limited.
Few players expect a slow-down in the summer months largely because of the catching up needing to be done following the disruptions seen so far to production and supply chains, but the first wave of turnarounds will be over, refinery output should be improved as COVID-19 lockdowns are lifted.
May 12, 2021
MOST READ – Europe ethylene, propylene: latest market developments
Author: ICIS Editorial
2021/05/12
The story below was our most read article in the last 12 hours.
By Nel Weddle
11-May-21 18:37
LONDON (ICIS)–European ethylene and propylene markets remain extraordinarily firm with production at a low point due to planned turnarounds and healthy demand which is showing no signs of letting up in the near to medium term.
Spring turnarounds reach their peak in May:
Refinery maintenance is also under way, further restricting propylene supplies.
Given the backdrop of planned outages, unscheduled events like the ongoing Tarragona, Spain, propane dehydrogenation (PDH) unit outage and most recently, the issues at one of the crackers at Gelsenkirchen in Germany are more difficult to manage.
Inventories having been built up with the turnaround season in mind, might offer some initial breathing space for those suddenly caught short, but otherwise the options are limited; many are reluctant in the midst of turnaround season to release tonnes.
Imports are not usually the first option due to lead times – prompt issues require prompt tonnes.
Those with volumes not surprisingly, target higher spot prices.
Ethylene spot pipeline prices flip-flopped through April from premiums to discounts and back to premiums, reflecting the impacts of cracker or derivative problems on a finely balanced market and were back in double-digit premium territory last week for the first time since January.
Propylene spot price premiums have persisted all year but are wide-ranging depending on grade, location, timing and affordability.
Demand across all derivatives is healthy but there are clear differences when it comes to affordability and some buyers are ready to accept whatever it takes to ensure further disruption to downstream production is limited.
Few players expect a slow-down in the summer months largely because of the catching up needing to be done following the disruptions seen so far to production and supply chains, but the first wave of turnarounds will be over, refinery output should be improved as COVID-19 lockdowns are lifted.
May 10, 2021
PODCAST: Distributors navigate market chaos, must build resilience
Author: Will Beacham
2021/05/10
BARCELONA (ICIS)–While chemical distributors have been able to thrive, despite chaotic supply/demand conditions, they must now plan for long-term trends such as digitalisation and sustainability.
- Current chaotic market conditions have echoes of 2008/9 financial crisis
- Distributor financial results have shown resilience in face of crisis
- Better quality data is helping distributors navigate crisis with agility
- Distribution is 15-20% of total chemical demand
- Care needed to build resilient supply chains without unsustainable costs
- Distributors can play role in developing regional circular economies
- Further consolidation can be expected via mergers and acquisitions (M&A)
- Digitalisation will allow better customer engagement, user experience
- Questions over size of Asia distribution market, quoted at $120-130bn
Register for Distribution Day on Tuesday 11 May to hear CEOs discuss the future of distribution.
Download the ICIS Top 100 Chemical Distributors list for 2021.
May 10, 2021
PODCAST: Distributors navigate market chaos, must build resilience
Author: Will Beacham
2021/05/10
BARCELONA (ICIS)–While chemical distributors have been able to thrive, despite chaotic supply/demand conditions, they must now plan for long-term trends such as digitalisation and sustainability.
- Current chaotic market conditions have echoes of 2008/9 financial crisis
- Distributor financial results have shown resilience in face of crisis
- Better quality data is helping distributors navigate crisis with agility
- Distribution is 15-20% of total chemical demand
- Care needed to build resilient supply chains without unsustainable costs
- Distributors can play role in developing regional circular economies
- Further consolidation can be expected via mergers and acquisitions (M&A)
- Digitalisation will allow better customer engagement, user experience
- Questions over size of Asia distribution market, quoted at $120-130bn
Register for Distribution Day on Tuesday 11 May to hear CEOs discuss the future of distribution.
Download the ICIS Top 100 Chemical Distributors list for 2021.
May 7, 2021
Intermediates & Derivatives (I&D)– Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
| Table 4 – I&D Financial Overview | |||
| Millions of U.S. dollars | Three Months Ended | ||
| March 31, 2021 | December 31, 2020 | March 31, 2020 | |
| Operating income | $88 | $166 | $131 |
| EBITDA | 182 | 262 | 203 |
| LCM (benefits) charges, pre-tax | — | (66) | 78 |
| EBITDA excluding LCM | 182 | 196 | 281 |
Three months ended March 31, 2021 versus three months ended December 31, 2020 – EBITDA decreased $14 million versus the fourth quarter 2020, excluding an unfavorable variance of $66 million due to LCM inventory benefits in the fourth quarter. First quarter results increased approximately $50 million due to LIFO inventory valuation charges in the fourth quarter. Compared to the prior period, Propylene Oxide & Derivatives results decreased approximately $35 million due to lower volumes driven by Texas weather events and planned maintenance partially offset by higher margins due to tight market supply. Intermediate Chemicals results decreased about $55 million primarily due to a decrease in volumes driven by the weather events. Oxyfuels & Related Products results increased approximately $25 million with higher margins benefiting from improving gasoline prices partially offset by lower volumes.
Three months ended March 31, 2021 versus three months ended March 31, 2020 – EBITDA decreased $99 million versus the first quarter 2020, excluding a favorable variance of $78 million due to LCM inventory charges in the first quarter 2020. First quarter 2021 results benefited approximately $10 million due to an increase in the euro versus the U.S. dollar exchange rate relative to the first quarter 2020. Compared with the prior period, Propylene Oxide & Derivatives results decreased about $25 million due to lower volumes driven by the weather events and planned maintenance partially offset by higher margins due to tight market supply. Intermediate Chemicals results decreased approximately $20 million due to lower margins driven by higher feedstock costs and lower volumes. Oxyfuels & Related Products results decreased approximately $70 million driven by lower margins and volumes. Volumes were lower driven by weather events and lower gasoline demand. Equity income increased more than $10 million due to improved results at our joint venture in China.
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